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bitcoin has recovered strongly from the $65,000 mark after a 6% drop from Monday's high around $69,500. Despite the recent pullback, btc remains in an uptrend that has been in place since early September. This rally shows resilience and helps maintain the bullish market structure.
Key data from CryptoQuant reveals that the average funding rate has risen steadily since September, indicating that bullish sentiment is increasing as more traders actively participate in the market.
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The next two weeks will be pivotal for bitcoin as it approaches March's all-time high. Investors and analysts are closely watching price movements as btc gains momentum to break key resistance levels.
If the bullish trend continues, bitcoin could be poised for another significant rally, with the potential to set new highs soon. However, any failure to maintain current levels could lead to renewed volatility.
bitcoin shows strength
Despite a recent drop, bitcoin remains strong above key demand levels, maintaining the overall bullish structure. Analysts and investors are closely monitoring the price action to confirm that the current phase is simply a bullish consolidation before the next bullish leg.
Axel Adler, CryptoQuant analyst x.com/AxelAdlerJr/status/1849330151445668189″ target=”_blank” rel=”nofollow”>shared data in xhighlighting the btc futures perpetual funding rate, which has shown consistent growth since bitcoin reached the $60,000 level. This indicates a growing number of bulls entering the market, with optimism increasing as the price rises.
Adler suggested that the bullish momentum will likely continue as long as this funding rate increases, reinforcing that btc is in a healthy consolidation phase. However, this does not guarantee an immediate breakup. There is still a strong chance that bitcoin will trade sideways over the next few days. Sideways price action could be essential in generating liquidity, allowing the market to gather strength for a larger move.
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While market sentiment remains optimistic, especially with the continued increase in bullish activity, investors should prepare for potential fluctuations. The next major price action could go in either direction, but consistent support above key levels is a positive indicator for those betting on further bitcoin price upside.
btc remains above key demand
bitcoin remains strong above the $66,000 level after finding support around $65,000. Currently trading at $67,100, the market appears to be in a consolidation phase and it may take some time before a break above the crucial $70,000 level.
For the bulls to maintain the momentum, it is essential that the price remains above $65,000 or finds support around the $64,300 mark, where both the 4-hour EMA and the EMA line up. mobile (MA).
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If bitcoin fails to hold these support levels, a deeper correction could be expected, with the price potentially retreating to areas of lower demand around $60,000. On the other hand, if btc manages to break and sustain above $70,000 in the coming days, this could trigger a strong rally towards challenging all-time highs.
With investors closely monitoring key support and resistance levels, the next few days will be crucial in determining bitcoin's direction.
Featured image of Dall-E, TradingView chart
